Anchor: The South Korean government dropped the term “recovery” in its latest monthly economic assessment amid downgraded economic forecasts from domestic and foreign organizations. The nation’s labor market is showing no signs of improvement with the employment rate for people in their 30 posting a decrease for the first time in about two years.
Our Lee Bo-kyung has this story.
Report: The Finance Ministry issued its monthly economic assessment report called the “Green Book” on Friday.
For ten successive months up until September, the ministry said the economy remained on the path of "recovery." But the October report dropped the term “recovery” in light of increasing uncertainties such as the deepening trade war between the U.S. and China and rising crude oil prices.
The retraction comes as domestic and foreign economic organizations have slashed their growth forecasts for South Korea.
The International Monetary Fund(IMF) recently downgraded the country’s growth outlook for this year from three percent to two-point-eight percent, citing trade conflicts and financial instability in emerging markets.
It also lowered the country’s growth projection for next year to two-point-six percent from two-point-nine percent.
Amid the gloomy forecasts, the country’s employment rate posted 61-point-two percent in September, down two tenths of a percentage point from a year earlier. The rate dropped for the eighth consecutive month since February.
In particular, the employment rate for people in their 30s slipped by point-two percentage point last month, posting a decrease for the first time in 21 months. The comparable figure for people in their 40s has been dropping for eight straight months.
Under the circumstances, the government, the presidential office and the ruling Democratic Party said earlier this week that they will produce measures soon to create short-term jobs in the public sector. The government plans to announce job measures within this month.
Lee Bo-kyung, KBS World Radio News.